The RBCI indicator is a MetaTrader 5 (MT5) trading tool that measures the difference between buying and selling pressure in financial markets. It monitors market dynamics to determine the trend and strength of a financial instrument.
The indicator histogram fluctuates between positive and negative zones, separated by a zero line. The histogram bar above the zero line shows a positive zone, indicating increased bullish pressure from buyers.
Conversely, the histogram bar below the line indicates a negative zone, indicating selling pressure. Moreover, the indicator is ideal for beginners, intermediate and advanced Forex traders.
How to Trade With the RBCI Indicator
The image above shows the buying and selling strength analysis of the EUR/USD currency pair on the M30 timeframe.
The RBCI indicator can be used to identify potential buy and sell signals when the histogram crosses above/below the zero line or when price forms a divergence from the histogram.
Therefore, consider buying an instrument when the histogram forms a positive deviation from the market price. Likewise, look for a selling opportunity when the histogram forms a negative deviation from the market price.
Additionally, you can look for a buy opportunity when the histogram crosses the zero line, or sell the instrument when it crosses the lower line. Additionally, the indicator is recommended to be used in combination with price action indicators/other trend following indicators to mitigate false signals.
Setting
The indicator comes with the following customizable parameters:
Shift: This determines the horizontal shift.
Conclusion
The RBCI Histogram Indicator for MT5 provides reliable market trend direction and potential reversal signals using bullish and bearish market pressures. However, be sure to manage your risk to protect your trading capital from significant losses from bad trades.
